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Historically, many different classes of business have been classified as public utilities, and thus have been legally mandated to go through the ratemaking process in order to determine the allowable service charges for their industry. Although the classification of public utilities has changed over time, typically such businesses must constitute a de facto monopoly (or "natural monopoly") for the services they provide within a particular jurisdiction. Prominent public utilities which must utilize ratemaking to set rates include railroads, natural gas distribution, telecommunications, and electricity generation and distribution.

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